McCulloch+v.+Maryland+(1819)


 * 1) __Basic Background__: James McCulloch, a cashier of the branch, was sued. The case was decided in 1819 by the U.S Supreme court. It was decided by the U.S Supreme Court that established the principles that the federal government possesses broad powers to pass a number of types of laws, and that the states cannot interfere with any federal agency by imposing a direct tax upon it.
 * 1) __What is going on:__ This case represents another illistrative example of the ongoing debate among the Founders of the U.S Constitutional government regarding the balance of powers between the states and the federal government. The federalists were in a favor of a strong central government whereas the Republicans wanted the states to retain most powers. Those who wrote and ratified the U.S Constitution ultimately agreed to grant the federal government certain specific powers known as the enumerated powers- listed in the constitution- and concluded with a general provision that permitted congress to make all laws that are necessaryand proper for the carrying out of the foregoing powers as well as all other powers vested in the U.S Government by the constitution. [[image:http://img.docstoccdn.com/thumb/orig/98539240.png width="335" height="243"]]
 * 2) __Court case in Supreme Court:__ One of the issues that concerned the Founders at the Constitutional Conventionwas how to divide power between the federal government and state governments. Reconciling national and local interests proved difficult. In the McCulloch case, the supreme court ruled in favor of federal power. Atissue in the case was the constitutionality of the act of congress chartering the Second Bank of the United States (BUS) in 1816. When state Banks began to fail in the depression of 1818, they blamed their troubles on the bank. One such state was Maryland, which imposed a hefty tax on " any bank not chartered within the state". When the bank's Baltimore branch was refused to pay the tax, Maryland sued James McCulloch, cashier of the branch, for collection of the debt. McCulloch responded that the tax was unconstitutional. A state court ruled for Maryland, and the court of appeals affirmed. McCulloch appealed to the U.S Supreme Court, which reviewed the case in 1819.
 * 1) __justification:__ In 1816, congress had incorporated the bank of the United States; and in 1818, the legislature of Maryland had passed a law taxing "all banks or branches thereof, in the state of Maryland, not chartered by the legislature." The purpose of this law was to prevent the United States Bank from doing business in the state. McCulloch, the cashier of the Baltimore branch, refused to pay the tax, was sued in the state courts, and lost. The case was appealed to the United States Supreme Court, where the Maryland decision was unanimously reversed.
 * 2) __lasting impacts:__ mcCulloch V. Maryland was a landmark decision by the Supreme Court of the United States. It was the first case that implied power. On March 17, 1819, Marshall, Cheif Justice, delivered the opinion of the court. In the case now, to be determined, the defendent, a sovereign state, denies the obligation of a law enacted by the legislatures of the union, and the plantiff, on his part, contests the validity of an act which has been passed by the legislature of that state.